Iron ore for delivery to China’s Tianjin port .IO62-CNI=SI was off 0.7 percent at $61.10 a tonne on Thursday, according to The Steel Index.

But the spot benchmark was still up modestly for the week, on track for its fourth weekly gain in five. It hit $61.80 on Aug. 16, the highest since May 3.

Hynes said he also expects some Chinese mills to replenish iron ore supplies ahead of the Sept. 4-5 G20 summit in China’s eastern city of Hangzhou.

“Mills will be pretty keen to push out any steel and restock iron ore leading into that event,” he said.

Amid efforts to curb overcapacity, Agricultural Bank of China Ltd , China’s third-biggest lender, has said it is increasing its scrutiny of lending to sectors with excess capacity including coal and steel.

“We’ve always expected market forces to continue to drive closures in steel mill capacity and that can come in the form of increased tightness in lending,” said Hynes.

The most-traded rebar on the Shanghai Futures Exchange was down 0.8 percent at 2,542 yuan ($382) a tonne by 0234 GMT. The construction steel product touched a nearly four-month peak of 2,649 yuan on Aug. 16.